Court has asked the Defendants to submit their replies on or before 19th December 2024.
[Special Civil Suit No. 295 of 2024 Yusuf Thanawalla Vs. Adar Poonawalla and 38 others.]
Thane, December 7, 2024: In a landmark legal development, the Senior Division Civil Court in Thane has directed Adar Poonawalla, Cyrus Poonawalla, and the Serum Institute of India to file their responses to an application seeking the attachment of their properties, issuance of arrest warrants, and their detention in prison. The application is part of a ₹5 lakh crore defamation suit filed by Shri Yusuf Thanawala, a member of the Awaken India Movement, who has alleged gross defamation and reputational harm.
The court has directed the Defendants Serum Institute, Adar and Cyrus Poonawallas to submit their replies on or before 17th December 2024. The matter will proceed on that date for further hearing and final decision.
Recently in many cases including the case of Tata Chemicals Ltd. The Courts have passed an order directing attachment of property, bank accounts and injunction in disposing of the property to secure the claim in the suit. [ Tata Chemicals Limited Vs. Kshitish Bardhan Chunilal Nath and Ors. 2022 SCC On Line Cal 3343 (DB), Strong Towers Private Limited Vs. Karnani Constructions and Ors. MANU/WB/1864/2024, Anumati Consultancy and Services Private Limited Vs. Wellside Global Private Limited MANU/WB/0092/2021]
Allegations of Financial Misconduct and Asset Diversion
In an 84 page detailed application filed under order 38,39 r/w 151 of Civil Procedure Code, the counsel for Plaintiff Adv. Nilesh Ojha and Adv. Ishwarlal Agarwal has presented evidence alleging that the Defendants have engaged in dishonest practices, including attempts to siphon off, divert, or liquidate assets to evade potential liabilities arising from the lawsuit. Two key transactions have been flagged as part of these allegations:
1. Sale of 40% Stake in SCHOTT Poonawalla to TPG:
According to reports from October 25, 2024, the Serum Institute, led by Adar Poonawalla, is negotiating the sale of a 40% stake in SCHOTT Poonawalla to private equity giant TPG. This significant divestment raises concerns that the Defendants may be liquidating valuable holdings to shield assets from potential decrees in favor of the Plaintiff.
2. Acquisition of 50% Stake in Dharma Productions:
Adar Poonawalla is reportedly set to acquire a 50% stake in Karan Johar’s Dharma Productions for ₹1,000 crores. The Plaintiff has argued that this transaction could be a step in their deliberate attempt to conceal assets amid looming liabilities totaling trillions of rupees.
Concerns Raised by the Plaintiff
The Plaintiff asserts that these financial maneuvers may hinder their ability to recover damages, as such transactions could effectively remove critical assets from the reach of court’s enforcement proceedings. The Plaintiff has urged the court to act swiftly to secure their claims and prevent further asset dilution by the Defendants.
Advocate Agarwal submitted that the court is empowered under Order 38, Order 39, and Section 151 of the Civil Procedure Code to pass orders for:
· Attachment of the Defendants’ properties;
· Issuance of arrest warrants and detention until security for the suit claim is furnished.
The Plaintiff argued that the conditions required for such reliefs are met, namely:
1. Strong Prima Facie Case: Substantial evidence, including admissions in the Defendants’ own affidavits, establishes the defamatory nature of their conduct.
2. Balance of Convenience: Lies heavily in favor of the Plaintiff, as failure to secure the Defendants’ compliance could irreparably harm enforcement efforts.
3. Immediate Danger or Harm: The Defendants’ alleged financial maneuvers present a clear and present risk to the Plaintiff’s ability to recover damages.
Detailed Case Note: ₹5 Lakh Crore Defamation Suit Against Adar Poonawalla, Cyrus Poonawalla, and Serum Institute.
The case revolves around allegations that the Defendants engaged in defamatory acts that severely harmed the reputation of the Plaintiff, as well as members of the Awaken India Movement.
1. Overview of the Suit:
o The defamation suit, filed by Shri Yusuf Thanawala, a member of the Awaken India Movement (AIM), seeks ₹5 lakh crores in damages. The Plaintiff alleges that the Defendants’ defamatory acts severely damaged his personal reputation and that of AIM, an organization known for its advocacy and public health campaigns.
o The Plaintiff contends that the defamatory statements caused mental agony, suffering, and loss of dignity, warranting compensation on a scale commensurate with the damage caused.
2. Plaintiff’s Contributions and Public Awareness Efforts:
o Yusuf Thanawala and the members of Awaken India Movement are recognized for their selfless efforts in raising public awareness about the side effects of vaccines like Covishield and other COVID-19 vaccines. His campaigns, supported by AIM, brought to light serious health concerns linked to these vaccines.
o Covishield, manufactured by the Serum Institute of India, was banned in 21 European countries after reports of severe death causing side effects, including fatalities. Despite these developments, vaccine mandates in India forced many to take the vaccine until they were later declared illegal and unconstitutional by the Supreme Court and various High Courts.
AIM’s awareness campaigns resulted in:
§ Millions of individuals in India refusing vaccines and booster doses.
§ Approximately 70 crore Indians rejecting booster doses, reportedly due to AIM’s efforts in exposing the alleged risks.
3. Support for Victims of Vaccine Side Effects:
o AIM played a crucial role in helping countless families of individuals who died or suffered serious injuries due to vaccine side effects seek legal recourse. Some notable cases include:
§ Shri Dilip Lunawat, father of Dr. Snehal Lunawat.
§ Smt. Kiran Yadav, mother of Hemant Kadwe.
§ Smt. Rachna Gangu, mother of Rithaika.
o AIM’s efforts resulted in significant legal actions, including:
§ The Division Bench of the Bombay High Court issuing notices to Adar Poonawalla, Bill Gates, and Serum Institute of India in a ₹1,000 crore compensation claim.
§ The Supreme Court issuing notices in Rachna Gangu’s case.
4. Conspiracy by Defendants:
o The Plaintiff states that Adar Poonawalla and the Serum Institute orchestrated a conspiracy to defame AIM and its members, including filing false police complaints aimed at arresting AIM members.
o Although the police rejected these complaints, the Defendants allegedly continued to use the rejected complaints as a basis for defamatory attacks on the Plaintiff and AIM by dishonestly suppressing the very fact that the said complaint was rejected by the police officials and Commissioner of Police two times.
5. Legal Precedents and Related Cases:
o This case is not the first involving allegations of defamation against Adar Poonawalla and the Serum Institute.
o A ₹10,000 crore defamation suit was previously filed by Shri Prakash Pohre, a senior member of AIM, in the Civil Court, Senior Division, Nagpur.
o In that case, the court ruled in favor of the Plaintiff, finding the Defendants’ defense to be false and frivolous.
o On 02.08.2024, the court ordered the prosecution of Adar Poonawalla and the Serum Institute under the Indian Penal Code (IPC) for filing false and misleading affidavits and attempting to mislead the court.
6. Current Allegations and Damages Claimed:
o The present case revolves around allegations that the Defendants, through defamatory statements and conspiratorial acts, targeted the Plaintiff and members of Awaken India Movement(AIM) to suppress their public health campaigns.
o The Plaintiff claims that these defamatory acts undermined AIM’s credibility, disrupted their public awareness efforts, and caused irreparable harm to their reputation.
o The damages sought—₹5 lakh crores—reflect the Plaintiff’s assertion that the Defendants’ actions caused extensive damage, not only to him personally but also to the broader social movement spearheaded by AIM.
7. Role of AIM in Public Advocacy:
o AIM’s campaigns have highlighted issues of vaccine safety and corporate accountability, prompting significant public discourse.
o With AIM’s assistance, families of alleged victims of vaccine side effects have pursued legal actions against powerful entities, such as Adar Poonawalla, Bill Gates, and Serum Institute, further increasing the organization’s visibility.
8. Key Points of Defamation and Harm:
o The Plaintiff alleges that the Defendants’ defamatory statements were part of a deliberate attempt to undermine AIM’s credibility and discourage public dissent regarding vaccine mandates.
o The Plaintiff further claims that the Defendants’ actions caused immense mental agony and disrupted AIM’s ability to advocate effectively for public health issues.
9. Legal Context and Broader Implications:
o The case highlights the complex intersection of corporate accountability, public health advocacy, and defamation law.
o The outcome of the case could set a precedent for high-value defamation suits involving powerful corporate entities, shaping the future landscape of corporate liability for reputational harm.
10. Court Proceedings and Orders:
o The court has directed the Defendants to file their responses by 17th December 2024. On this date, the court will deliberate further on the Plaintiff’s application for property attachment, arrest warrants, and detention orders.
11. Significance of the Case:
o This case, involving one of the largest defamation claims in Indian legal history, has drawn national and international attention.
o Legal experts are closely monitoring the proceedings, as the court’s decision could redefine the scope of corporate liability for defamation, particularly in cases involving social advocacy and public health.
